Why Did the Kerala Withdraw Its Stand on the PM-SHRI Scheme? Explained in Detail

30-10-2025

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In a significant policy shift, the Kerala PM SHRI Scheme controversy has become a major political and administrative flashpoint in the southern state. After years of opposing the National Education Policy (NEP) 2020, the Left Democratic Front (LDF) government, led by Chief Minister Pinarayi Vijayan, surprised many by signing the Memorandum of Understanding (MoU) with the Centre for implementing the PM Schools for Rising India (PM SHRI) Scheme. However, within weeks, the same government indicated a review and potential withdrawal—triggering a heated debate within the coalition and beyond.

 

What Is the PM-SHRI Scheme?


Launched in September 2022, the PM SHRI Scheme is a centrally sponsored initiative aimed at developing over 14,500 schools across India as model institutions aligned with the National Education Policy (NEP) 2020. These schools are meant to promote modern infrastructure, experiential learning, and skill-based education.


The scheme has a total outlay of ₹27,360 crore for five years (2022–23 to 2026–27), with ₹18,128 crore as the Centre’s share. Until recently, 33 states and Union Territories had signed the MoU—Kerala became the 34th, leaving only Tamil Nadu and West Bengal yet to join.

 

Why Kerala Initially Opposed PM-SHRI


Kerala’s resistance to the PM SHRI Scheme stemmed from ideological and policy differences with the Union government. The LDF, led by the CPI(M) and CPI, opposed the NEP 2020, calling it a “centralised and saffronised” policy that undermined federal education rights and secular education values.


The state instead introduced its Kerala Curriculum Framework (KCF) 2023, which focused on scientific temper, constitutional values, and secularism. Education Minister V Sivankutty repeatedly said that Kerala would not compromise its education model for central control.

 

Why Kerala Reversed Its Decision


The sudden reversal in Kerala’s stand on the PM SHRI Scheme was largely influenced by financial and administrative pressures. The Centre reportedly withheld around ₹456 crore from the Samagra Shiksha scheme for 2025–26, in addition to arrears from previous years—₹513.54 crore for 2024–25 and ₹188.6 crore for 2023–24—totaling nearly ₹1,158 crore.


This delay directly affected approximately 40 lakh students in government and aided schools, especially those from marginalized sections. Essential services such as uniforms, textbooks, and mid-day meals were disrupted.


Education Minister Sivankutty justified signing the MoU as a strategic move to unlock central funds and prevent further disruption. He clarified that the Kerala PM SHRI Scheme would not override the state’s curriculum, adding that Kerala’s public education principles would remain intact.

 

Internal Division Within the LDF Coalition


The signing of the MoU led to visible cracks within the LDF alliance. The CPI, a key partner in the coalition, expressed strong objection, claiming it was kept in the dark about the MoU. CPI leaders demanded the government clarify under which order the agreement was signed and argued it contradicted the LDF’s ideological opposition to NEP 2020.


CPI Secretary Binoy Viswam met Chief Minister Vijayan but said the issue remained unresolved. Meanwhile, the Congress-led opposition accused the government of taking a “U-turn” and aligning with the Centre’s education policy. Congress MP Jebi Mather called it an “attempt to inject communal thinking into Kerala’s education system,” while KC Venugopal alleged a “bigger conspiracy” behind the decision.

 

Kerala’s Attempt to Withdraw and the Legal Hurdle


Amid mounting political pressure, the Kerala cabinet decided to review the PM SHRI Scheme implementation and temporarily freeze the MoU. A cabinet sub-committee was formed under Education Minister V Sivankutty to study the scheme’s implications in detail.


However, the withdrawal is not as straightforward as the government initially believed. The Kerala PM SHRI Scheme MoU includes a clause that allows withdrawal only through mutual consent between the Centre and the state, with a mandatory 30-day notice period. According to legal experts, unilateral withdrawal holds no validity.


If Kerala wishes to continue receiving Samagra Shiksha Keralam (SSK) funds while opting out of PM SHRI, it might have to approach the Supreme Court. Similar situations have previously occurred in Punjab, where the Centre froze funds after the state announced withdrawal from PM SHRI.
The Union Ministry of Education, meanwhile, stated it was unaware of any official communication from Kerala regarding withdrawal. Officials noted that further action would be taken only after the state clarifies its stance formally.

 

Current Status of the Kerala PM SHRI Scheme


As of now, the Kerala PM SHRI Scheme remains in limbo. The MoU is still legally valid, but the state government has paused its implementation pending the sub-committee’s report. The Centre continues to hold the upper hand since any withdrawal requires its consent.


The LDF coalition remains divided, with CPI(M) attempting to strike a compromise to avoid further political fallout. For now, Kerala’s education funding and political stability remain delicately balanced on the outcome of this review.

 

Conclusion


The Kerala PM SHRI Scheme debate goes beyond administrative decisions—it reflects the broader ideological tension between state autonomy and central education policies. While the move may have been financially motivated, its political consequences continue to challenge the unity of Kerala’s ruling coalition. The coming weeks will determine whether Kerala fully embraces or legally exits the PM SHRI initiative—making this one of the most closely watched education policy tussles in India.

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